Emergency measures: trouble ahead

Some of the emergency fund governance measures that jurisdictions have brough in could well be dangerous. Before directors plunge in and take advantage of them, they should get clarity on their implications for tax and other items. Bear in mind nothing like this has ever occurred before; it could lead to some unexpected results.

The consequences for tax of virtual meetings must be a real concern. For obvious reasons directors are forced to attend board meetings remotely. Whilst it might be fine to do this from a regulatory point of view, it could still carry a significant tax risk.

No tax authorities, that The NED is aware of, have made any rulings on this matter – including HMRC. As a result, there could potentially be some nasty surprises when the crisis is over and actions taken during this period are judged by tax officials.To read more on this story see the April issue of The NED.